WEBVTT TESLA'S NEW 5-BILLION DOLLAR BATTERY FACTORY. THE ASSOCIATED PRESS SAYS, THE CAR COMPANY CHOSE NEVADA. NEW MEXICO WAS ONE OF FIVE STATES BEING CONSIDERED. CALIFORNIA, ARIZONA, AND TEXAS WERE ALSO IN THE RUNNING. THE DECISION IS AN ECONOMIC BLOW, THE LOSS OF AN ESTIMATED 65 HUNDREDS JOBS. ACTION 7 NEWS REPORTER LAURA THOREN JOINS US LIVE FROM CITY HALL TO FIND OUT WHAT LOCAL OFFICIALS AND LAWMAKERS ARE SAYING ABOUT THAT. WELL DOUG AND SHELLY -- WE'VE SPOKEN TO THE CHAMBER OF COMMERCE, THE MAYOR'S OFFICE, AND STATE LAWMAKERS. ALL TELL US THAT THEY BELIEVE NEW MEXICO "WOULD" HAVE BEEN A GREAT FIT FOR THE MULTI BILLION DOLLAR TESLA FACTORY. UNFORTUNATELY WE WERE NOT CHOSEN... AND DIFFERENT PEOPLE HAVE DIFFERENT THEORIES FOR THE REASON WHY NEVADA BEAT US IN ORDER TO OBTAIN THAT FACTORY AND THE 65 HUNDRED JOBS THAT WOULD'VE GONE WITH IT. TERRI COLE THE C-E-O OF THE GREATER ALBUQUERQUE CHAMBER OF COMMERCE SAYS WE JUST WEREN'T COMPETITIVE ENOUGH AND THAT THIS SHOULD BE A LEARNING OPPORTUNITY. FOR US TO BE EVEN MORE COMPETITIVE AND OFFER MORE INCENTIVES IN THE FUTURE - LIKE TAX INCENTIVES OR OTHER PACKAGE DEALS - TO LURE THESE KINDS OF COMPANIES AND LARGE SCALE OPERATIONS TO NEW MEXICO. Initially I was disappointed about it - but - on the other hand, we have to pick ourselves up by the bootstraps and be forward thinking in what we say and do, so that we can get our state prepared to be ready and competitive for the next opportunity. MAYOR RICHARD BERRY TOLD ACTION 7 NEWS IN PART "WE APPRECIATED THE OPPORTUNITY TO PITCH ALBUQUERQUE TO TESLA...WE PUT TOGETHER A WORLD CLASS PROPOSAL AND BELIEVE WE ARE A WORLD CLASS CITY." WE SPOKE TO THE SENATE MAJORITY WHIP TIM KELLER WHO SAID HE THOUGHT WE WOULD'VE HAD A BETTER SHOT AT LURING TESLA HERE "IF" GOVERNOR MARTINEZ HAD CALLED A SPECIAL SESSION TO OFFER A BETTER PACKAGE DEAL FOR THE COMPANY. MARTINEZ'S OFFICE HAS TOLD US IN THE PAST THAT SPECIAL SESSION WOULD'VE BEEN COSTLY, AT AROUND 50-THOUSAND DOLLARS A DAY FOR TAXPAYERS. ACCORDING TO KELLER, THAT'S AMOUNT IS NOT COMPETITIVE TO THE CASH THAT TESLA WOULD'VE BROUGHT TO OUR STATE "IF" THAT 5 BILLION DOLLAR GIGAFACTORY WAS BREAKING GROUND, HERE. LIVE AT CITY HALL LAURA THOREN KOAT ACTION 7 NEWS. THERE MAY BE A SMALL RAY OF HOPE FOR NEW MEXICO. THE ASSOCIATED PRESS REPORTS, TESLA WILL STILL MAKE PLANS FOR A SECOND FACTORY SITE, IN CASE NEVADA DOESN'T COME THROUGH ON ITS PROMISES, OR IF TESLA DECIDES TO BUILD A SECOND FACTORY. WE CONTACTED GOVERNOR MARTINEZ'S OFFICE TO SEE WHAT SHE HAS TO SAY ABOUT THE DECISION. THE GOVERNOR'S SPOKESMAN SAYS SHE WON'T COMMENT TODAY, BECAUSE SHE HASN'T BEEN OFFICIALLY TOLD TESLA HAS CHOSEN NEVADA, ADDING SHE'LL BE READY TO TALK ABOUT THE DISAPPOINTMENT TOMORROW. WE'LL SHOW YOU WHAT SHE HAS TO SAY, TOMORROW ON ACTION 7 NEWS AND KOAT DOT COM. SO WHAT MAY HAVE GIVEN NEVADA THE EDGE? ONE BIG THING--TAXES. THE STATE DOESN'T HAVE EITHER A PERSONAL OR CORPORATE INCOME TAX, BUT THE LATTER COULD CHANGE AFTER THE NOVEMBER ELECTION. ONE OF NEVADA'S U-S SENATORS SAYS IF VOTERS APPROVE A CORPORATE INCOME TAX, THAT COULD IMPACT THE TESLA DEAL. NEVADA ALSO HAS SOME ATTRACTIVE TAX BREAKS, AND HELPS COMPANIES PAY FOR JOB TRAINING FOR THEIR EMPLOYEES. IT'S ALSO CLOSE TO THE CALIFORNIA PLANT WHERE TESLA BUILDS ITS CARS, AND THE STATE IS RICH IN LITHIUM - A KEY INGREDIENT IN THE BATTERIES. THIS ISN'T THE FIRST TIME TESLA HAS PASSED OVER NEW MEXICO. IN 2008, TESLA SAID IT WOULD BUILD A FACTORY IN ALBUQUERQUE. BUT CALIFORNIA'S GOVERNOR PUT UP A PACKAGE OF TAX BREAKS, AND TESLA DECIDED TO GO WITH THE GOLDEN STATE. CALIFORNIA TRIED TO DO THE SAME THING AGAIN THIS YEAR, FOR THE GIGA-FACTORY.